Fixed or tracker: the mortgage dilemma | This is Money

Fixed or tracker: the mortgage dilemma | This is Money

The cost of new mortgage deals fell sharply this week as banks engaged in a rate-cutting war.

Fixed rates have been cut by up to 1 percentage point, knocking £93 per month off a £150,000 mortgage, while tracker deals — which follow the Bank of England base rate — remain even cheaper.
It comes as the base rate was kept at 0.5 % last week for the 27th consecutive month.

This prompted one leading economist, Roger Bootle, at Deloitte, to predict rates will stay at 1 % or below until 2014.